About 10 billion tons of chitin, a natural polymer, is generated annually. However, the utilization of chitin was hindered because of the lack of a clean and effective degradation process. In this study, bacterial strains with chitosanase-producing ability were isolated from soil and identified using 16S rDNA, gyrA, and gyrB gene sequence analysis. In addition, the degradation of insoluble chitin and antifungal capability of the bacterial strains were investigated. One selected isolate was identified as Bacillus amyloliquefaciens strain MY001. It showed antagonistic effect on Phomopsis asparagi (Sacc.) Bubak and could degrade insoluble chitin. The combination of chitin/chitosan and MY001 strain could enhance the inhibition on the growth of P. asparagi. In conclusion, strain B. amyloliquefaciens MY001 can directly degrade chitin. The combination of MY001 strain with chitin shows more effective inhibition on P. asparagi growth. These results suggest the direct utilization of chitin against fungal diseases of crops.